UPDATE 1-US reality TV stars Jon & Kate to split

(Refile to add dropped word in sixth paragraph)

* Kate: "I don't hate him, never have, never will"

* Jon: "I don't hate Kate"

(Recasts with episode airing, quotes, details throughout)

NEW YORK, June 22 (Reuters) - The stars of the reality television show "Jon & Kate Plus Eight" said on Monday's episode that they had decided to split up after 10 years of marriage.

"Kate and I have decided to separate," Jon Gosselin said just over 40 minutes into a one-hour episode of the TLC cable network show. The announcement ended months of speculation about the couple, whose lives along with their eight children -- twins and 5-year-old sextuplets -- are the subject of the program.

"I don't hate him, never have, never will," Kate Gosselin said.

"I don't hate Kate," Jon said.

While roughly half of the episode from the series' fifth season was taken up with delivery and assembly of the children's new play houses, the couple also addressed the tensions in their deteriorating relationship, which has created a tabloid media frenzy.

"We don't have anything now," said Jon, who criticized the media scrutiny the family has faced in recent years.

Kate said the split was "not a chapter that's been brought on by our show" but "a chapter that probably would have played out had the world been watching or not."

Jon described himself as being "excited and hurt at the same time." Reports have circulated that he will be moving to New York City, although that was not addressed in the episode.

So who gets the house? The kids.

Jon and Kate both said the children would continue living in the house in Wernersville, Pennsylvania, with each parent staying there during their time with them.

They said they would conduct separate on-air interviews and be filmed with the children at the different times.

"The show must go on," Kate said.

As the episode wound down, on-screen text confirmed that on Monday "legal proceedings were initiated in Pennsylvania to dissolve the 10-year marriage of Jon and Kate Gosselin." (Writing by Chris Michaud; Editing by Stacey Joyce and Bill Trott)